If you are a first-time homebuyer in California, you may have questions about the best way to make a down payment on your loan. There is no one-size-fits-all solution, and we will work with you to find the right type of mortgage and down payment for your financial situation.
How Much Is a Down Payment on a Home Loan?
The amount you pay on your home loan as a down payment depends on the type of loan you get and how much you can afford to pay. Most conventional home loan down payments start at 3% to 5%.
You can also pay up to 20%, but this may be too high for some first-time buyers. Our mortgage broker will work with you to find the best percentage for your budget.
What Are Some Low Down Payment Mortgage Lenders?
Several mortgage lenders in Orange County provide low down payment options. Our mortgage broker can explain the most popular which are:
- FHA loans, which are good if your credit score is low or average
- VA loans with zero down payment if you are a veteran or active military personnel
- Conventional 97 for those with good to excellent credit scores
- HomeReady and Home Possible for low-income buyers
- USDA loans with zero down payment if you are buying a home in a rural area of Riverside or Orange County
Which Is the Best Down Payment Option?
It may sound great to get a zero down payment home loan, but is it right for you? You will owe no money at closing except the standard closing costs. Mortgage insurance premiums are often attached to low down payment mortgages, but not always. The cost may also be discounted. To get a no-down-payment loan, you need to meet certain eligibility requirements, starting with a government-backed loan.
If you would like to take advantage of this great time to buy a home, we recommend you look at your options for the type of mortgage lenders that fit your budget and the down payment required. The different options and types of loans can be very confusing. We can help you understand what type of loan is available within your budget.